Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
The new credit manager of Kay's department store plans to liberalize the firm's credit policy. The firm currently generates credit sales of $575,000 annually. The more lenient credit policy is expected to produce credit sales of $750,000. The bad debt losses on additional sales are projected to be 5% despite an additional $15,000 collection expenditure. The new manager anticipates production and selling costs other than additional bad debt and collection expense will remain at the 85% level. The firm is in the 34% tax bracket.
A. If the firm maintains its receivables turnover of 10 times, how much will the receivables balance increase?
B. What would be Kay's incremental after-tax return on investment?
C. Assuming additional inventory of $35,000 is required to support the additional sales compute the after-tax return on investment?
Inland Service is considering changing its credit terms from net 15 to net 30. If this change is made, the average collection period will increase from 20 days to 40 days and 50 Million of new sales will be added to its current sales level of 30 Million. The bad debts for their new customer are expected to be 20% of sales. Inland's variable costs are 75% of sales and its tax rate is 46%. Should Inland extend the credit period to 30 days?
If after one year the market value of the loan has increased by 1.8% and LIBOR is 5%, what will be the net obligation of Interloan?
a) What are the after-tax cash flows associated for each relevant period?
Last week we discussed the connection between technology and your career. Now you have the opportunity to implement this connection through self-reflection.
answer the two questions with a minimum of 20 words per question1 how do sinking funds reduce default risk?2 what is a
According to Value Line, Bestway has a beta of 1.15. If 3-month Treasury bills currently yield 7.9 percent and the market risk premium is estimated to be 8.3 percent, what is Bestway's cost of equity capital?
For each of the following cases, determine the total taxes resulting from the transaction. Assume a 40% tax rate. The asset was purchased 2 years ago for $200,000 and is being depreciated under MACRS using a 5-year recovery period. The asset is sold ..
Garret Industries has a? price/earnings ratio of 19.46X a. If? Garret's earnings per share is ?$1.65?, what is the price per share of? Garret's stock?
Consider a bond (same as previous question) with $1000 par value, 13 annual coupon payments remaining, coupon rate of 6.8 percent, and yield to maturity.
A report says that the between-subjects factor of participants' salary produced significant differences in self-esteem.
Discuss some benefits and pitfalls of global investing.
Compute deadweight loss from this $1 per unit tax and how much tax revenue government will get from tax. In determining tax incidence burden, compute tax incidences for both seller and buyer and sketch graph.
What does it mean to say that individuals as a group are net suppliers of funds for financial institutions? What do you think the consequences might be in financial markets if individuals consumed more of their incomes and thereby reduced the supply ..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd